The cryptocurrency landscape is currently witnessing heightened fluctuations as Bitcoin (BTC) experiences significant market movements. Recently, large holders, often referred to as whales, offloaded between 100,000 and 115,000 BTC, totaling approximately $12.7 billion. This activity marks one of the largest distributions we have seen since mid-2022, injecting substantial selling pressure into the market.
The recent sell-off was primarily led by whales controlling between 1,000 and 10,000 BTC. Many of these significant holders had amassed over 270,000 BTC in the months preceding this event, only to pivot and release a vast amount of supply into the market.
As a result of this sharp profit-taking, Bitcoin prices declined to under $109,000, representing a 5.5% fall for the month and breaking a positive trend that lasted four months.
Signs of Bitcoin (BTC) Market Stabilization
In spite of the recent heavy selling, there are indications that the pressure may be easing. Whale transactions peaked briefly on September 3, with over 95,000 BTC changing hands within that week, the most significant shift since March 2021. However, activity has since tapered to approximately 38,000 BTC per week by early September.
Currently, Bitcoin (BTC) is fluctuating in a tighter range of between $111,700 and $112,000, hinting at a potential return to stability.
Analysts express caution, as a developing “head and shoulders” formation along with an unfilled Fair Value Gap (FVG) at $114,000 could indicate another possible downturn. If this resistance area prompts additional selling, BTC prices might revert toward $106,000, putting key support levels to the test.
Institutional Interest Remains Strong
While whale activity has seen a decrease, there’s evidence that institutional buyers are stepping in to absorb some of this pressure. Inflows from corporate investors and ETFs have created what analysts describe as a “structural counterbalance” against the whale sell-offs.
A notable example is Japanese firm Metaplanet Inc., which has recently increased its Bitcoin treasury by acquiring 136 BTC, elevating its total holdings to over 20,000 BTC.
According to Nick Ruck, Director at LVRG Research, demand spurred by ETFs and significant corporate accumulation may play a vital role in stabilizing Bitcoin even amid persistent whale selling.
Nevertheless, the overarching outlook for Bitcoin remains closely linked to macroeconomic variables, particularly the Federal Reserve’s meeting scheduled for September 17, where decisions on interest rates could significantly influence liquidity in risk-oriented markets.
With Bitcoin still sitting around 11% lower than its mid-August peak of approximately $124,000, market participants are divided: will institutional support prevail over whale selling, or are we on the verge of a more profound decline?
Cover image from ChatGPT, BTCUSD on Tradingview
